DraftKings’ Monthly Unique Payers Surges 64 Pct Amid Rise In Gaming
In a sign of a continued rise in gaming amid the pandemic, DraftKings Inc. reported on Friday (Nov. 13) as part of its Q3 results that Monthly Unique Payers (“MUPs”) for its business-to-consumer (B2C) operation surged 64 percent in contrast to Q3 2019.
DraftKings reported that over a million monthly unique paying customers engaged with the firm each month during Q3 on average.
“The resumption of major sports such as the NBA, MLB and the NHL in the third quarter, as well as the start of the NFL season, generated tremendous customer engagement,” DraftKings Co-founder, CEO and Chairman of the Board Jason Robins said in an announcement.
DraftKings rolled out iGaming in West Virginia and mobile sports betting in Illinois in Q3.
The company said it was able to effectively get new clients in Illinois and cross-sell from current offerings because of Illinois Governor J.B. Pritzker’s suspension of an “in-person registration requirement.”
DraftKings noted that it now has mobile sports betting in 10 states after a successful rollout in Tennessee. The 10-state footprint comprises 20 percent of the American population, according to the company.
As for its overall results, DraftKings Inc. reported an adjusted loss per share of 57 cents on $133 million in revenue. The results exceeded analyst estimates of a loss per share of 61 cents on $131.75 million in revenue.
With casinos partially or mostly out of the equation amid the pandemic, digital sportsbook companies such as DraftKings and FanDuel are growing their digital sports betting choices and collaborations to keep the action hot until the coronavirus passes (and later.)
Lockdown boredom and the absence of real live sports to watch have made for a perfect storm of opportunity for DraftKings.
“A lot of the leagues and the teams have been looking towards us almost like a beacon of hope in some respects to start driving engagement back to their products [and] platforms,” Dan Hannigan-Daley, director, sportsbook product at DraftKings, recently told PYMNTS.
In 2018, The Supreme Court struck down a 1992 law passed by Congress that made it illegal for most states to make sports betting legal inside of their jurisdictions.